​Industrial product in Silicon
Valley has seen tremendous growth in terms of average price per square foot
since 2014. This growth is primarily driven by office and multi-family
developers who demolish the industrial buildings for new developments that offer
higher returns.

The growing success of e-commerce
and advanced manufacturing could slow this trend in some submarkets in the
Valley. Following
six consecutive years of rent growth across the nation, industrial product has
become a favored property type among investors.
The additional interest will only
add more competition for space and continue to drive up rates.